From New York Times today: “The government uses China’s 800 million farmers to provide grain, labor and capital for urban development. State banks take deposits in rural areas but make loans almost exclusively to richer ones. The authorities pour resources into prestigious urban projects, like the $1.24 billion Shanghai spent to build a state-of-the-art Formula One racetrack and play host to the European event through 2010.
Villages rarely get such help. All farm families, regardless of income, pay land and agriculture taxes as well as fees for social services, often exceeding what wealthier urban residents pay.
Partly as a result, the authoritarian government has learned to live with seething social discontent. It has become practiced at defusing confrontations that threaten one-party rule. ”
Read the full article here.